Fresh bid for waterfront hotel
Monday 8 November 2004
Wellington investment firm St Laurence's on-again, off-again bid to buy the Hilton Hotel on Auckland's Princes Wharf for $51 million is back on.
By The LandlordSt Laurence group managing director Kevin Podmore said he was still negotiating to buy the hotel and expected an outcome in the next week.
"We'd like to gear it up higher than before and borrow more, probably two-thirds of the price," he said.
Investors torpedoed the purchase last month when they failed to contribute enough cash for the deposit.
St Laurence wanted $29.7 million from investors for a proportionate ownership scheme which forecast a 9.25 per cent annual cash return and needed 1188 "interests", each costing $25,000.
But on October 21, Podmore announced the scheme had been axed after attracting less than half the funds needed for the deposit.
Read More - Opens in a new window
Commenting is closed
Those who were anticipating a Covid-prompted housing market collapse got it wrong with the latest REINZ data revealing strong growth in prices and sales.
Treasury might be expecting house prices to fall - but market data suggests otherwise, with Trade Me Property’s August data the latest to show rising prices and high demand.
The Reserve Bank’s programme to lend directly to retail banks could be ready soon. If it is, that’s likely to mean lower interest rates on loans – and more support for the housing market.